Dear Jason – September 2021
I have withholding taken from my paychecks, but I have not filed my tax returns for several years. Am I in trouble? What should I do?
We work with clients who have fallen behind with their tax filings. The good news is that you have been withholding taxes from your pay. If you have withheld enough to pay your tax liability, then you will not owe any taxes and may even receive a refund. If you did not withhold enough, then you may owe taxes along with interest and penalties. Also, by filing, you start the statute of limitations; the IRS generally only audits tax returns for up to 6 years from when you file. If you do not file, then the clock never starts. Let us know if we can be of assistance.